UPDATE: Chevron Q2 Earnings Beat Estimates

Chevron

reported stronger-than-expected second-quarter earnings. The San Ramon, California-based company posted quarterly earnings of $5.7 billion, or $2.98 per share, compared to $5.4 billion, or 2.77 per share, in the year-ago period. Foreign currency effects reduced latest quarter earnings by $232 million, versus a rise of $302 million in the year-ago quarter. Its sales climbed to $56 billion versus $55 billion. However, analysts were expecting earnings of $2.66 per share on revenue of $56.93 billion. Worldwide net oil-equivalent production declined to 2.55 million barrels per day in the quarter, versus 2.58 million barrels per day in the year-ago quarter. US upstream earnings declined $29 million from the year-ago quarter to $1.05 billion, while international upstream earnings rose $344 million to $4.21 billion. US downstream earnings surged to $517 million from $138 million in the year-ago period, while international downstream earnings fell to $204 million from $628 million. Chevron purchased $1.25 billion of its common stock in the quarter under its share repurchase program. In the first six months of 2014, capital and exploratory expenditures increased to $19.6 billion, from $18.3 billion in the year-ago period. Chevron Chairman and CEO John Watson said, “Current quarter earnings reflected stronger market conditions for crude oil, although some of these benefits were offset by lower production volumes as a result of planned maintenance activity at Tengizchevroil in Kazakhstan.” Chevron shares rose 0.63% to $130.06 in pre-market trading.